Auto Loan advice - trying to buy in my name only

[Anonymous]

My husband totaled his car 2.5 years ago (and of course it was paid for), so we bought another used car appx. 20K and have been on time for every payment.  Unfortunately, both  of our credit was terrible at the time, so we are stuck with the Santander loan at 15% interest.  We now have positive equity in this car and would like to trade it in sometime in the next 6 months to a year with hopefully around 2K positive equity and a 3-4K additional downpayment.  The car we would like would leave a loan of approx. 25K needed.  Right now, the car we would be trading in is in both of our names.  I would like to have the new car only in my name as my credit is better (not great, but better than his - my only collection account is being deleted and he has 3 on his that will not be, so he is stuck for a while in the lower 500's.)  My question is - will they accept his income without actually adding his name to the loan and pulling his credit, or will they just count it as "additional income" for me?  I make 45K and year and he makes 165K, so a HUGE difference obviously.  If our mortgage payment wasn't so incredibly high, I'd just try to save enough cash to buy without a loan, but not sure we can wait that long (children are outgrowing current car quickly!)

Thanks!

[p-]

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@Anonymous wrote:

My husband totaled his car 2.5 years ago (and of course it was paid for), so we bought another used car appx. 20K and have been on time for every payment.  Unfortunately, both  of our credit was terrible at the time, so we are stuck with the Santander loan at 15% interest.  We now have positive equity in this car and would like to trade it in sometime in the next 6 months to a year with hopefully around 2K positive equity and a 3-4K additional downpayment.  The car we would like would leave a loan of approx. 25K needed.  Right now, the car we would be trading in is in both of our names.  I would like to have the new car only in my name as my credit is better (not great, but better than his - my only collection account is being deleted and he has 3 on his that will not be, so he is stuck for a while in the lower 500's.)  My question is - will they accept his income without actually adding his name to the loan and pulling his credit, or will they just count it as "additional income" for me?  I make 45K and year and he makes 165K, so a HUGE difference obviously.  If our mortgage payment wasn't so incredibly high, I'd just try to save enough cash to buy without a loan, but not sure we can wait that long (children are outgrowing current car quickly!)

Thanks!

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Talk to your bank or credit union, you will get a much better deal than dealer financing.  They may be able to tell you loan requirements before applying.  Also, a good down payment would probably go a long way toward qualifying you.

One person with good credit on a loan app can be helpful.  It would show better than him going alone.  When I first started logging my activity I got a motorcycle loan.  My income was great, but my credit was not, and my wife's credit was pretty good.  So they looked at both of us and approved me for a reasonable loan.

Also, use your fico-fu to optimize your report before pulling.  You have some time, so work on GW, PFD, and DV on his baddies where applicable.  Remember that it takes many attempts at PFD before you get anywhere...

Good luck!

[Anonymous]

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@Anonymous wrote:

My husband totaled his car 2.5 years ago (and of course it was paid for), so we bought another used car appx. 20K and have been on time for every payment.  Unfortunately, both  of our credit was terrible at the time, so we are stuck with the Santander loan at 15% interest.  We now have positive equity in this car and would like to trade it in sometime in the next 6 months to a year with hopefully around 2K positive equity and a 3-4K additional downpayment.  The car we would like would leave a loan of approx. 25K needed.  Right now, the car we would be trading in is in both of our names.  I would like to have the new car only in my name as my credit is better (not great, but better than his - my only collection account is being deleted and he has 3 on his that will not be, so he is stuck for a while in the lower 500's.)  My question is - will they accept his income without actually adding his name to the loan and pulling his credit, or will they just count it as "additional income" for me?  I make 45K and year and he makes 165K, so a HUGE difference obviously.  If our mortgage payment wasn't so incredibly high, I'd just try to save enough cash to buy without a loan, but not sure we can wait that long (children are outgrowing current car quickly!)

Thanks!

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I actually cannot give you an answer on that, as I feel differing state rules may give you options. As a married spouse you maybe able to add the income, or discount some of yrou obligations to his oncome over yours- but only a bank or credit union, or dealer finance guy can help you truly construct the loan the best way for you.